Restaurant Business Plan and Financial Analysis

The assignment presents a detailed framework for developing a comprehensive business plan for a hypothetical Balti Palace restaurant in London. It emphasizes conducting thorough market research to understand customer preferences and competitive landscape. The document delves into the use of financial tools like Net Present Value (NPV) and Internal Rate of Return (IRR) for decision-making regarding investment and project viability. It also highlights key considerations such as rising competition and the importance of balancing quality with cost.

BUSINESS DECISION MAKING

INTRODUCTION
Each and every company is required to maintain an effective and efficient decision making so
that they are able to get their pre set goals and objectives. Now there is a mandatory need to
frame the company's policy and strategy in such a manner so that the company could frame the
better strategy. Balti Palace also make their policies for the attainment of their set objectives.
Effective decision making practises are the need to make the company viable and also get the
sustainable development over the competitors(Provis, 2010). However, decision making is not an
easy task to frame. Managers of the company analyse the informations and data and
simultaneously take effective decision that will help to make the company to have the sustainable
development.
TASK.1
1.1 Plan for the collection of primary and secondary data:
Balti Palace company focuses on the plan for gathering the quality data so that they can make
their strategy effective. But, there are two ways by which the data can be gathered via primary
way and the secondary way. Primary method of data collection is not easy for the small scale
enterprises as this is much costly and time consuming process. On the other way, secondary data
is collected from the books, journals, database banks, internet, and etc., it is easy to collect and
saves the time for gathering data and information. Now, it is much important that the data
gathered must be from the reliable sources. Balti Palace company while framing the strategy on
the basis of data, it will understand the need of the importance of their strategy. If the strategy is
highly important then the company need to gather the data from the primary sources that will
help the company to provide the exact information for the relevant field. But, if the company
wants make the general strategy, in that case company is required to gather their data from the
secondary sources. So the plan for gathering information and data is based on the need of the
strategies of the company. Balti Palace will need to opt the information or data so that they will
easy to formulate the plans or strategies to understand the need of their market and potential
consumers.

1.2 The survey methodology & sampling frame:
There are such a variety of routes by which data can be assembled in the association.
However , this is impractical to study of whole respondents for a little organization. Along these
lines, the organization just make their strategies just by inspecting techniques. Organization picks
a few respondents from the prospects advertises and conduct the research on them so that the
organization would ready to gather the general data over the whole public. Although, a sampling
procedure is a straightforward and simple for collection of data. Whole survey is a tedious and
expensive process, which is impractical for the little associations. Balti Palace organization is a
little organization and it needs data of whole London individuals', which is exorbitant and
organization can't endure the cost(Shepherd, 2011). Yet, organization can utilize the sampling by
which it can ready to gather the data for itself(Nielsen, B. B. and Nielsen, S., 2011). In any case,
there are such a large number of routes by which organization can do review through sampling
process:
1). Interpretation the populace: Organization's promoting technique is more critical for
study on a particular socio economics to study in a populace. Under this procedure, a populace is
clarified for studying.
2). Developing a sampling outline: Under this stage, organization would set up the
sampling frame so that the organization can source whole components inside a populace.
3). Determine sample size: Organization additionally need to recognize the span of the
sample so it can ready to have satisfactory data for its business.
4). Indicating sampling strategies: This is the last stride in testing process under which
the inspecting technique is resolved. Under this method, company also determine their sampling
methods fro making the effective decision.
So these are the sampling methodologies which are used for making effective decision-making
fro the attainment of the set targets for the sustainable development.
1.3 Design a questionnaire to collect data and provide a justification for its design:
A survey is confined keeping in mind the end goal to get those greater part of the information
which will be connected for Assessment purpose(Muindi, 2011). Balti Palace is required to draft
those under said poll for getting larger part of the information which might be connected for
them :

1. How might you land to London?
a. By means of auto.
b. By transport.
c. With insignificant exertion transporter.
d. With genuine bearer.
e. Other, what: _____________________________________
2. Where did you get some answers concerning this restaurent?
a. I thought about it.
b. By means of Web.
c. Allies and relatives.
d. Media.
e. Books and helpers.
f. Travel office.
g. Fairs and also shows.
h. It was a bit of the travel package.
i. Other, what: ____________________________________

3. Is it your first visit to this restaurant?
a. No.
b. Yes.
5. What were the principal clarifications behind your visit to this restaurant?
a. Overviewing relatives and colleagues.
b. Business prupose.
c. Setting off to a meeting, congress, workshop, distinctive sorts of guidelines.
d. Culture.
e. Fun.
f. Amusements and redirection.
g. Prosperity.
h. Religious reasons.
i. Others, what : _
2.1 & 2.2 Summarize and analysing information for decision making:
Balti Palace gathered information and data which is then used for the analysis for making
the effective decision for the firm in order to achieve the pre set goals and objectives. The

managers of the different departments evaluate the data and turn those data into quality
information for the evaluation purpose.
Investigation was completed to evaluate relative risk over all food safety hazards, and
survey the degree to which controls are adjusted to dangers. The examination was utilized to:
Distinguish high hazard zones to illuminate prioritization for the following key strategic
plan. strategic needs recognized from this analysis include: decreasing foodborne illness with a
specific concentrate on campylobacter in chicken; prior discovery of developing dangers through
enhanced horizon scanning and intelligence assembling(Milovic and Milovic, 2012).
Recognize points in the food pecking order where there is clear misalignment of authority
controls to dangers. Territories of specific concern are elevated amounts of authority controls for
dairy homesteads, abattoirs and slicing plants in respect to the dangers postured. The FSA is
completing work to address these kinds of factors.
Distinguish information gap. A key data hole is the level of microbial contamination of
imports.
Coordinate the more deep analysis towards the most elevated hazard food pecking orders
analysis the outcomes:
Age Population in percentage
Below 15 9
15-25 11
25-35 23
35-45 32
45-55 46

Below 15
15-25
25-35
35-45
45-55
55 & above
0 5 10 15 20 25 30 35 40 45 50
population
It has been analysed from the above mentioned chart, that the London entire population at
different age group are taking the assistance for food from the restaurant chain for satiating their
need. Below 15 age group people does not consider the need of restaurant fro their daily food,
their ratio is very small. Only 9 % population from this group used the restaurant facility. While
on the other hand, 15-25 age group people are utilize restaurant services 11% of their total
population. 25-35 age group people only 23% are used restaurant services in London. 45-55 age
group people are the one who used the most restaurant services in London city. There are the
people who almost used the restaurants services almost 50 % of their total population so the
company need to make their strategy after taking in such 45-55 age group. And company also
want to introduce the new dish so that the company may get the competitive advantages over the
other restaurants.

AGE MID VALUE POPULATION fx CF
0- 15 7.5 9 67.5 9
15-25 20 11 220 20
25-35 30 23 690 33
35-45 40 32 1280 65
45-55 50 46 2300 111
55-65 60 12 720 123
133 5277.5
MEAN 39.680451128
MEDIAN 17.5
MODE 32
S.D 14.607075911
Particular Formula
Median(In case of
even number values) {L1 + (N/2) – c/F}*i]
17.5
Mean ∑X/N 39.68
Mode L + h ( fm – f1 / 2fm – f1 - f2 ) 32
In the above table, mean, median, mode and standard deviation have been calculated. By
and large, when we talk about average, we are suggest to the mean. If you somehow managed to
take ten numbers, include them all up, and afterwards separate by ten, you would have computed
the mean. It's the manner by which we discuss the average tallness or weight of a gathering of
individuals, the average number of books individuals have, or the average number of bugs you
eat while you're sleeping(Maxwell, Jeffrey and Lévesque, 2011).
In the given situation, Balti Palace assist the company to make the policy as per the
average age people like 39.68 years. So this will guide the company to make their policies so that
the optimum attention can be given to this particular age group.
The median is utilized considerably less frequently despite the fact that it is an extremely
elucidating and important term(Hwang and Yoon, 2012). This measure discloses the time when a
large portion of the numbers are bigger and a large portion of the numbers are littler. The median
is an exceptionally helpful number to utilize when the distribution of data is skewed – for

example, the greater part of the numbers are little and a couple are to a great degree expansive.
Things like number of kids (most families have a few children however a little rate of families
have at least 15 children) or number of Mastercards (the vast majority have a couple yet a little
rate have at least 20 cards) may be more qualified to utilize the median. In the given scenario, the
median is 17.5.
Indeed, even less regularly utilized is the measure called mode. We may need this
measure to be about putting frozen yogurt on top of our pie, but rather it alludes to the most
widely recognized number in a set.
At the point when your information take after the typical bend precisely, the mean,
median, and mode will all be a similar outcome. Since most information aren't ordinary,
company's managers should choose what measure to utilize. In the event that managers aren't
sure, it's difficult to turn out badly by giving in any event the mean and the median. What's more,
make certain to share the standard deviation.
2.3 & 2.4 Analyse the data using measure of dispersion quartile, percentiles and the correlation
coefficient, and explain how these calculations helped you to draw useful conclusions
Measure of dispersion provides that how much variance are in the data and also try to mitigate
the variance. Company with the help of RANGE, INTER QUATILE RANGE, STANDERD
DEVIATION, etc. are used to point out the deviation of the company.
Range: Range shows the data range or width. In the given question, range represents the
lower value and upper value in the firm. The upper value in this sited case is 65 while the lower
value is 0. This shows the range of the people for whom company need to make their policies.
Inter quartile range: It is also the tool by which company can also make their strategy
with the help of such tactics. With the help of IQR company would able to know that the how
observation of the values of the data are dispersed(García-Peñalvo and Conde, 2014). However,
IQR displays the range of the middle half of the observation. Although, IQR is mandatory
measure of spread when utilizing the median as a measure of central tendency.
Standard deviation: This is the methodology which is used for showing the average
distance between an observation value and the mean of data set. it indicates how well the mean
represents to the qualities in an informational collection(Gabrielsson and Gabrielsson, 2013).
Like the mean, it is suitable to utilize when the data collection is not skewed.

Standard deviation is calculated by using various under-mentioned formula:
Standard deviation: √∑Fdx2/N – (∑Fdx/N)2
Quartile: the quartiles of a positioned set of data values are the three focuses that partition
the data collection into four equivalent groups, each group involving a quarter of the data. A
quartile is a kind of quantile. The primary quartile (Q1) is characterized as the centre number
between the most modest number and the median of the data set. The second quartile (Q2) is the
median of the data. The third quartile (Q3) is the centre value between the median and the
highest value estimation of the data set.
In utilizations of statistics, for example, the study of disease transmission, humanism and
finance, the quartiles of a positioned set of information qualities are the four subsets whose limits
are the three quartile points. Consequently an individual thing may be depicted as being "in the
upper quartile.
Percentile: Percentile is a measure utilized in statistics showing the value underneath
which a given rate of percentage in a gathering of observation fall. For instance, the twentieth
percentile is the value below which 20% of the observations might be found.
The term percentile and the related term percentile rank are regularly utilized as a part of the
revealing of scores from standard referenced tests.
3.1 & 3.2 Produce Graphs using Spreadsheets and draw valid conclusions based on the
information derived and make trend lines:
Restaurents (million)
Arby's kitchen 96.32 37000
Bonanza Stea 19 15412
Yo Sushi 9 7102
Loch Fyne 5 3945
zizzi 2.61 2102
stradada 5.4 2621
wagamama 412 2247

Arby's kitchen
Bonanza Stea
Yo Sushi
Loch Fyne
zizzi
stradada
wagamama
0
5000
10000
15000
20000
25000
30000
35000
40000
From the above graph it has been found that, UK is the best chain of the eatery in world start
from the adjacent cooking to worldwide sustenance. There has been sufficient affirmation which
shows that, bit of the general business of existing eatery in UK(Frey, Schulz-Hardt and
Stahlberg, 2013). One of Arby's kitchen has most extraordinary organization of the general
business of the its goodwill and the way of support which it serves. As the appear differently in
relation to that, the dominant part of eateries are been especially using the ruined or stale
vegetable and natural items which is the reason quality is insufficient.
Restaurant % growth in UK
multi cuisine 41.73%
cuisine 19.65%
fixed cuisine 16.33%
fast cuisine 15.32%
seasonal cuisine 13.56%

multi cuisine
cuisine
fixed cuisine
fast cuisine
seasonal cuisine
As indicated by the above outline, it has been found that, cockney are to a great degree joined to
multi cooking eateries who serves world treats. Larger piece of the all inclusive community are
planning to change to the multi food restaurants with 41.73% conversely with the settled or
rather tropical based restaurants. The review was driven by the heath London council of business
remembering the ultimate objective to help the new business visionary.
3.3 Business presentation using suitable software and techniques to disseminate information
effectively:
Covered in PPT
3.4 Formal business report:
To open a restaurant company with an ultimate objective, company need to consider
distinctive sorts of data analysis so that the firm can attain the market achievability and financial
sustainability(Fernando and Chowdhury, 2010). With the help of basic research it has been found
that, most of the customer in London is particularly cleared with the quality rather than cost.
Beside that, another principle contemplations would cost and vibe of the restaurants which is
particularly considered before moving to the restaurants.
Discretionary research helps the relationship to give sustenance far reaching customer base.
From the above research, it has been found that, a vast part of restaurants are using new and
quality kind of sustenance which is served inside the London and worldwide with rise in Abey
diners because of its quality and the rest known for using low esteeming techniques to get the
market base. Nevertheless, rise in servings of blended greens in UK promote and the climb in

percolated food rather than junk sustenance is one of the noteworthy reason of sensitivity toward
the ledbury eatery.
4.1 & 4.2 appropriate project plan for an activity and determine the critical path information
processing tools:
Before composing a business plan for a business it is essential to know the mandatory
requirement for the report. The motivation behind the report should be clear up. Build up a
business depiction for the restaurant In this the name of the eatery will be given, the area of the
restaurant and what foods menu does it serves(Craft, 2013). It incorporate the contact quantities
of the proprietors of the restaurants and a short portrayal ought to be given about their
experience. After this in the report the employees and the managers are should have been
depicted in which the points of interest of the staff is given. Points of interest of the providers of
those required items ought to be specified in the report. In the wake of completing the operations
exercises the sustenance look into must be done likewise inquire about on the focusing on market
is required to be finished. Than the menu is set up with the costs against them which will be
charged by the proprietor.
4.3 Financial tools for decision making:
There are numerous gadgets of fundamental administration which can be used by the customer
for settling on any decision towards any wander or for any methodology. There are two systems
or procedures which can be scholarly to settle on any decision as for this issue are Net present
esteem and Interior Rate of Return.
Net present value : It is described as the association between present estimation of money inflow
and present estimation of money surge. Net present value is strategy for the capital budgeting.
This method show the association efficiency(Brynjolfsson, Hitt and Kim, 2011). With the
assistance of NPV, organization can ready to know the net present value of the venture
recommendations.
Internal rate of return: This is a system for capital budgeting. This strategy find out by rate. This
procedure is portrayed the association's internal rate of return. Internal rate of return is the point
where the present value of outflow is equal to the present value of inflow.

From the above calculation, it has been found that the NPV is negative. So company
would not need to opt the project.
CONCLUSION
From the above report, it has been found that Balti Palace is required to make fundamental
research for effective development of the fundamental research has helped the associations to
aggregate the basic kind of data which shows people of London are on edge to support quality
than cost. Beside that vibe and portion options are other genuine attractions for the customers.
From the assistant research it has been found that, rising competition between the flow firms
inside the London and UK will be one of the noteworthy issues.
year inflow Pv@12%
0 -190000 1 -190000
1 50000 0.893 44650
2 64000 0.797 51008
3 58000 0.711 41238
4 70000 0.635 44450
NPV -8654

REFERENCES
Books and Journals